JamOnBread‘s Auctions NFT Smart Contract with revenue sharing mechanism for whole Cardano NFT space to use!

[GENERAL] Name and surname of main applicant

Michal Urbanek

[GENERAL] Are you delivering this project as an individual or as an entity (whether formally incorporated or not)

Entity (Incorporated)

[GENERAL] Requested funds in ada

190000

[GENERAL] Please specify how many months you expect your project to last (from 2-12 months)

4

[GENERAL] Please indicate if your proposal has been auto-translated into English from another language.

No

[GENERAL] Summarize your solution to the problem (200-character limit including spaces)

Developing a smart contract that fairly rewards all parties involved in the Auction process thanks to advanced UTxO management. Our solution will reduce the current market entry barriers.

[GENERAL] Does your project have any dependencies on other organizations, technical or otherwise?

No

[GENERAL] If YES, please describe what the dependency is and why you believe it is essential for your project’s delivery. If NO, please write “No dependencies.”

No dependencies.

[GENERAL] Will your project’s output/s be fully open source?

Yes

[GENERAL] Please provide here more information on the open source status of your project outputs

Fully open-sourced under the Apache/MIT/GPL license.

[SOLUTION] Please describe your proposed solution.

We recognized a significant challenge in the NFT space on the most decentralized blockchain. Despite its decentralized nature, the majority of NFT transactions are concentrated on just one private and profiting platform. In response, we set ourselves on a mission to level the playing field and foster more competition by building a solution that has the potential to empower other and/or specialized marketplaces and contributors in the ecosystem.

Our proposed smart contract incorporates multiple on-chain affiliate levels and dynamically splits transaction fees based on various factors. These factors include the marketplace where the NFT is Auctioned, the marketplace where the final bid occurred, and the contributors involved in the NFT sale (link affiliate). Unlike traditional smart contracts, where transaction fees are exclusively received by the contract owner, our approach is different and serves not one business but the whole community.

We are going to apply the same philosophy as on instant buy/sell/offer SC in order to accomplish this goal with Auction SC.

Check out in greater detail on: https://jamonbread-io.gitbook.io/jamonbread/marketplace/smart-contract/incentive-structure-and-rewards

[IMPACT] Please define the positive impact your project will have on the wider Cardano community.

New businesses can build their products and integrate Cardano blockchain more easily and without the high initial costs and expertise and traffic/liquidity hoarding before such projects can become competitive. 

Our ultimate goal is to establish this smart contract solution as the industry standard. By adopting our smart contract, marketplaces can rather focus on new features or become a niche marketplace fostering healthy competition beyond the realm of smart contracts. 

[CAPABILITY & FEASIBILITY] What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?

We are fully transparent with our business entity based in Prague, Czech Republic and we are building with guidance and cooperation with strong entities in Cardano such as Vacuum Labs (Nufi, Wingriders) and Cardanians. Knowledge and expertise sharing with companies who already launched and run successful projects gives us the necessary perspective to see how and what to build in a specific time-frame.

Feasibility of the project has been done with the help of Auditing team and the design of the solution is already laid out.

[Project Milestones] What are the key milestones you need to achieve in order to complete your project successfully?

Designing

• Description: Design the solution for the proposed Smart Contract with the auditing firm.
• Output: Specific document summarizing the design of Auction Smart Contract solution with revenue sharing mechanism
• Acceptance criteria: Detailed description of main functionality and necessary requirements for programming team who is going to program the SC in Aiken.

Development

• Description: Develop Auction Smart Contract based on the design structure and requirements.
• Output: Codebase that is tested and ready for security audit.
• Acceptance criteria: Deployable and tested script which fullfils the design specs.

Audit

• Description: Run security audit in the length of 5-10 MD.
• Output: Completed audit summarizing Auction SC vulnerabilities and recommendations to fix its security issues.
• Acceptance criteria: All issues and vulnerabilities have a proposal how to fix them.

Code adjustment and Internal Audit report

• Description: Adjust the code based on the audit report and fix vulnerabilities and security issues.
• Output: Document summarizing applied code optimizations which fix issues and vulnerabilities discovered by audit.
• Acceptance criteria: All issues and vulnerabilities are fixed.

Deployment

• Description: Deploy the Smart Contract script on testnet, ensure its functionality and then deploy on mainnet with open-sourced licence.
• Output: Deployed Smart Contract on mainnet with open-sourced licence.
• Acceptance criteria: Anyone can access the Smart Contract's code base and use under the license for its business purposes.

Completion report

• Description: Final project completion report and video demonstrating the use case in real environment on Cardano mainnet.
• Output: Github repo with Auction SC that is ready for any entity or individual to use for their business purposes under the Apache/MIT/GPL license.
• Acceptance criteria: Public github repo.

[RESOURCES] Who is in the project team and what are their roles?

• Martin Miksanik - Aiken coding and UTXO Management
• Josef Taborsky - Project Management
• Michal Urbanek - Product Management
• Vacuum Labs - Auditing Department has been chosen as a partner to cooperate on Designing, Code review and Internal Audit phase.

Full list of team members that both directly and indirectly participate on the project:

• https://jamonbread-io.gitbook.io/jamonbread/the-company/our-team

[BUDGET & COSTS] Please provide a cost breakdown of the proposed work and resources.

Design: 20.000 ADA (~10,5%)

• Aiken developer 80 hours
• Auditing firm’s fee - design

Development: 58.000 ADA (~30,5%)

• Aiken developer 160 hours
• Code review fee

Audit: 50.000 ADA (~26,3%)

• Complete security audit

Code adjustment and internal audit report: 20.000 ADA (~10,5%)

• Document: Internal Audit report
• Code adjustments: 80h

Deployment: 40.000 ADA (~21%)

• Deploy and run in a simulated environment: 160h
• Prepare technical manuals for onboarding partners: 40h

Completion report: 2.000 ADA

Development efforts including: Aikent script development, deployment, back-end and front-end integration, testing and documentation are estimated to be 520 hours at an average market rate of 65 EUR/hours. Total costs are ~33.600 EUR which makes the largest portion of the requested funds.

Auditing firms rate including: Aiken script security audit, code review, script structure design consulting all amount at total of ~27.200 EUR 

Overhead, Project management and Marketing: ~5.700 EUR

Funding required is 66.500 EUR, with current rates (~0.35 ADA/EUR) we round up the number to 190.000 ADA

[VALUE FOR MONEY] How does the cost of the project represent value for money for the Cardano ecosystem?

Since we are proposing this Smart Contract to be an Industry standard model for Cardano NFTs Auctions, we decided to employ Senior developers and professional partners for Internal Audit, Code design and Review. Despite a professional team, rates still represent industry average for their respective seniority level. Smart Contract can easily become a single point of failure and high risks of funds locked or lost is present if code is not built with a high precision. 

[IMPORTANT NOTE] The Applicant agrees to Fund Rules and also that data in the submission form and other data provided by the project team during the course of the project will be publicly available.

I Accept